Zumiez Third Quarter Earnings Sneak Peek

Zumiez Inc. (NASDAQ:ZUMZ) will unveil its latest earnings on Thursday, November 29, 2012. Zumiez is a mall-based specialty retailer of action sports related apparel, footwear, equipment and accessories.

Zumiez Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 47 cents per share, a rise of 4.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 56 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 53 cents during the last month. Analysts are projecting profit to rise by 26.7% compared to last year’s $1.52.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at net income of 17 cents a share versus the estimate of profit of 13 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between August 29, 2012 and November 23, 2012, the stock price fell $11.06 (-35%), from $31.57 to $20.51. The stock price saw one of its best stretches over the last year between October 9, 2012 and October 16, 2012, when shares rose for six straight days, increasing 6.1% (+$1.58) over that span. It saw one of its worst periods between July 3, 2012 and July 11, 2012 when shares fell for six straight days, dropping 12.5% (-$5.04) over that span.

A Look Back: In the second quarter, profit fell 19.5% to $2.1 million (7 cents a share) from $2.6 million (8 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 20.4% to $135.1 million from $112.2 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 18.4% in revenue from the year-earlier quarter to $182.3 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.48 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.23 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 43.7% to $89.7 million while assets decreased 15.7% to $222.5 million.

Analyst Ratings: There are mostly holds on the stock with nine of 17 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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